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Bullard, James on 2018 March 11 at 12:00

You would not have to go very high in this environment to be in a restrictive policy stance.  If we went too far we would start to put downward pressure on inflation in an environment where inflation is already below target.

James Bullard, the St Louis Fed president and one of a handful of doves in the Fed system, said lifting rates four times in 2018 could drive down inflation — especially when the central bank’s programme of reducing its asset holdings is becoming “more and more forceful”. The central bank began gradually unwinding its $4.5tn balance sheet in October last year. “You would not have to go very high in this environment to be in a restrictive policy stance,” Mr Bullard said in a Financial Times interview. “If we went too far we would start to put downward pressure on inflation in an environment where inflation is already below target.” Bullard, James

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